Why Pilbara Minerals Limited Share Price Rose 9.43% Today

Pilbara Minerals Ltd [ASX:PLS] rose 9.43% today, and is currently trading at 87 cents after closing at 79.5 cents yesterday.

Despite a rough start to the year, things are starting to look up for the company. This is the largest one-day increase since hitting a record high of $1.22 per share on 9 January.

Why did the PLS share price rise?

Pilbara Minerals announced today that they have completed stage two of the pre-feasibility study (PFS) in the Pilgangoora lithium-tantalum resource, which has delivered exceptional results, in turn driving up the share price.

The outstanding results demonstrate the strong financial and technical value of the expansion project, which is scheduled for completion in mid-2018.

Ken Brinsden, managing director and CEO of Pilbara Minerals, said:

The compelling results of the Stage 2 PFS provided a clear pathway to unlock further value in the outstanding Pilgangoora lithium-tantalum resource and, in the process, cement its position as a globally significant, low-cost supplier of lithium raw materials for decades to come.

The exponential growth which is occurring across the lithium-ion supply chain as the industry in China and elsewhere gears up for transformational growth to meet demand from the automotive and energy storage sectors is now becoming better understood.

What’s next for Pilbara Minerals?

The PFS indicates that the expansion of Pilgangoora will be a strong, high-margin project. The forecasted life-of-mine revenue is AU$11.5 billion. For the first five years of operation, revenues are expected to be AU$3.12 billion.

The result from the PFS validates the Pilgangoora project’s scale, long life and economic return. Based on the information provided by Pilbara, the company has the potential to take full advantage of the current and future demand for lithium raw materials.

PS: If you’re interested in learning more about the battery boom of 2018 and why now is the best time to buy big on lithium, you can download our free report Why Lithium is Your Best Speculative Bet’ here.

Kris Sayce,

Publisher, Money Morning


Danielle Rawlings,

Analyst, Money Morning

Kris is never one to pull punches when discussing market developments and economic events that can affect your wealth. He’ll take anyone to task — banks, governments, big business — if he thinks they’re trying to pull a fast one with your money. Kris is also the editor of Microcap Trader — where he reveals the best opportunities he’s discovered in the markets. If you’d like to more about Kris’ financial world view and investing philosophy then join him on Google+. It's where he shares investment insight, commentary and ideas that he can't always fit into his regular Money Morning essays.
Kris Sayce is the Publisher and Investment Director of Australia’s biggest circulation daily financial email, Money Morning Australia.Kris is a fully accredited advisor in shares, options, warrants and foreign-exchange investments. Kris has close to twenty years’ experience in analysing stocks. He began his career in the biggest wasp’s nest in the financial world — the city of London — as a finance broker back in 1995.
It’s there where he got his ‘baptism of fire’ into the financial markets, specialising in small-cap stock analysis on London’s Alternative Investment Market. This covered everything from Kazakhstani gold miners to toy train companies.After moving to Australia, Kris spent several years at a leading Australian wealth-management company. However he began to realise the finance and brokerage industry was more interested in lining its own pockets with fat fees, commissions and perks —rather than genuinely helping out the private investors they were supposed to be ‘working’ for. So in 2005 Kris started writing for Port Phillip Publishing — a company which was more attuned to his investment outlook. Initially he began writing for the Daily Reckoning Australia— but eventually, took over Money Morning. It’s now read by over 55,000 subscribers each day. Kris will take anyone to task — banks, governments, big business — if he thinks they’re trying to pull a fast one with your money! Whether you agree with him or not, you’ll find his common-sense, thought-provoking arguments well worth a read. To have his investment insights delivered straight to your inbox each day, take out a free subscription to Money Morning here. Kris is also the editor of Tactical Wealth and Microcap Trader where he reveals the best opportunities he’s discovered in the markets that you could profit from. If you’d like to learn about the latest opportunity Kris has uncovered, take a 30-day trial of Tactical Wealth here or Microcap Trader here. Official websites and financial e-letters Kris writes for:

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